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The global ground support equipment market size was valued at USD 7.14 billion in 2022 and is predicted to accentuate from USD 8.34 billion in 2023 to USD 13.32 billion by 2031, exhibiting a CAGR of 6.03% during the forecast period.
Ground support equipment refers to service-providing equipment such as towing airplanes, refueling, de-icing, cleaning, freight carts, portable water storage, fire-fighting, passenger service, emergency services, and lavatory waste tank drainage. This equipment supports the airport operation, primarily for the terminal's service area aircraft on the apron side.
Ground support equipment (GSE) is primarily used at airports to deliver services to aircraft between flights. Ground support equipment is majorly used to support the safe operations of the aircraft after landing and before taking off at the airport. The GSE involves aircraft mobility, cargo, and passenger loading ground power operation.
Air carriers across the globe have faced extreme financial pressures and have cut capacity at unparalleled rates due to a smaller number of passengers. Some airlines have shut down completely; some of these may never return. The robust growth is due to the growing demand for ground support equipment.
Unmatched Challenges in the Aviation Industry Impacted Market Dynamics
The global COVID-19 pandemic had been staggering and unprecedented, as ground support equipment witnessed a lower demand across all regions than pre-pandemic. Additionally, as per the International Air Transport Association, the number of passengers in 2037 is expected to reach 8.2 million. Hence, ensuring effective and efficient ground and cargo handling is important.
According to the Air Transport Association, IATA report, airlines’ losses are anticipated to be about 7 billion in 2022 which is an improvement on the USD 9.7 billion loss for 2022. This is better than the losses realized in 2021 and 2020 accounting to USD 42.0 billion and USD 137.7 billion respectively. Hence, the total aviation industry losses in 2020-2022 reached over 150 billion, in total. Additionally, a significant increase in air traffic and cargo transportation leads to an increase in the global ground support equipment market share.
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Increasing Use of Sustainable Modes to Bolster Global Ground Support Equipment Market Growth
The aviation sector is robustly focusing on the use of greener products. Authorities globally are constantly working on implementing guidelines for eco-friendly processes and technologies. Increasing environmental awareness is anticipated to create a high demand for eco-friendly processes and technologies integration in aircraft ground support equipment (AGSE) for the aviation industry. For instance, in February 2021, Action Construction Equipment (ACE) Ltd. signed a contract with Waaree ESS to design, develop, and supply a 23kWh lithium battery operated for 3-tonne forklift applications. These are deployed at Chennai airport and equipped with Waaree lithium batteries. Initiatives by key market players will propel the market growth during the forecast period.
Increased Focus on Operational Efficiency Enhancement to Accentuate Market Growth
Airports are constantly trying to decrease turnaround time and increase their operational efficiency. The construction of underground GSE has helped reduce operational time and equipment congestion in airports. Adopting advanced GSE is a major driver of the market's growth. For instance, in October 2022, a U.S.-based safety Science Company launched a new standard and service for evaluating electric ground support equipment powered by lithium-ion batteries at airports.
Increase in Post-Pandemic Travel to Drive Ground Support Equipment Market Growth
Since the number of COVID-19 patients is going down, followed by the ease in travel restrictions and implementation of safety regulations by airlines and airport authorities, airport ground, and cargo handling is expected to experience a rise in the market growth in the forthcoming years due to a subsequent rise in a number of travelers in the post-pandemic period. A recent survey by the IATA of 4,700 respondents from 11 countries around the world revealed that about 60% of the respondents expected to be traveling within two months of the pandemic's containment, and over 70% would do so as soon as they can to meet friends and family. However, it is noteworthy that despite the universal desire to travel, nations would manage their plans to reopen differently. As the cases reduce, people will be able to travel to countries with tight restrictions as well. Hence airport ground and cargo handling is expected to experience high demand in the forecast period.
Growing Cargo Transportation, Air Traffic, and Air Travel to Enable Growth
Increased air travel, air traffic, and cargo transportation have highly contributed to the market's growth. Additionally, airports' rising adoption of next-generation GSE adds to market growth globally. The International Air Transport Association data states that the global air freight markets followed the demand for air cargo increased by 18.7% in 2021 compared to 2020. As per the reports stated by the IATA, total air traffic in November 2022 (measured in revenue passenger kilometers or RPKs) rose 41.3% compared to November 2021. Globally, traffic is now at more than 75% of November 2019. This implies that growth in air travel leads to air traffic, ultimately leading to the market's growth.
Inadequate Airport Infrastructure to Support GSEs Limit Market Growth
Increased use of electric or battery-operated GSEs has led to sustainable cost-cutting in airport operations. However, an absence of adequate airport infrastructure to charge and maintain the electric GSEs is expected to cause a hindrance in the regular operations of the airport. Additionally, the high acquisition cost of electrical products and the limited life span of most equipment requiring continuous replacement are restraining factors for the market. Since electric GSEs are cost-saving and sustainable due to low emissions and fuel wastage, the cost of procuring electric GSEs is higher, and high demand for the same causes a restrain.
Growing Air Freight Transportation to give momentum to Hi-lift Loader Segment
Based on type, the market is classified into tugs & tractors, pushback tractors, passenger boarding lifts & steps, hi-lift loaders, de/anti-icing vehicles, belt loaders, water service vehicles, lavatory service vehicles, and others.
The high lift loader segment will witness remarkable growth during 2023-2031. The growing investment in R&D to develop high-capacity lift loaders and rising cargo transportation will likely boost the market growth. The passenger boarding lift & step segment is projected to show significant growth due to the increasing number of air travelers, modernization of conventional GSEs, and rising airports across the globe.
Growing Initiatives by the Airlines and Governments Toward Green Initiatives to Drive the Growth of for Electric Vehicles Segment
This market is divided into non-electric, electric, hybrid, fuel cell vehicles (FCV), and advanced GSE based on the power source.
The electric GSE segment is expected to rise at the highest rate from 2023-2031. The surge is due to increasing demand for low-carbon emission products, and rising focus on government's green initiatives since the electric-powered GSE creates less pollution and is more sustainable than old GSEs.
The non-electric segment held the largest market share in 2022. The presence of non-electric equipment, such as high lift loader vehicles, water service vehicles, belt loaders, tractors, lavatory vehicles, and others, has led to the highest market share. Due to their applications, the increasing demand for these vehicles will drive the segment's growth. Furthermore, the fuel cell vehicle (FCV) segment will grow significantly from 2023 to 2031. Key original equipment manufacturers focus on designing and developing hydrogen fuel cells that enable airports to reduce carbon emissions to zero. Thus, many go-green campaigns are expected to propel the segment's growth.
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New Sales Segment Dominated the Market Due to a Surge in the Number of Airports
Ownership segments the market into new sales used sales, and rental/lease. The rental/lease segment is predicted to grow with the highest CAGR from 2023-2031. The surge is due to the airport operations' affordability, followed by growing demand for GSEs from small airlines.
The new sales segment dominated the market in 2022. An increase in air travelers, the rapid expansion of the aviation sector, and rising spending on airport modernization programs are projected to drive the segment's growth. The used sales segment is expected to showcase moderate growth owing to increased airport demand for refurbished equipment.
North America Ground Support Equipment Market Size, 2022 (USD Billion)
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The market is analyzed across North America, Europe, Asia Pacific, and the Rest of the world.
North America dominated the market in 2022 and was valued at USD 2.30 billion. The growing aviation industry, rising investments in research & development of aviation GSE, and a prominent presence of numerous airports and airlines boost the market growth across North America. The U.S. airlines flew 28,000 flights to more than 800 airports in nearly 80 countries, connected nearly 2.5 million air travelers, and transported 28,000 tons of cargo daily.
Asia Pacific is predicted to have the highest growth from 2023 to 2031. The growth is due to the rising investments from emerging economies in the aviation sector, such as India and China. Additionally, growing urbanization has led to an expansion of the aviation industry. COMAC, a Chinese plane manufacturer, predicts that China will become the world's largest aviation market by 2040. The country's fleet size will reach 9,957 by 2040 and could account for nearly 22% of the global passenger aircraft fleet. Furthermore, India is planning to build 100 new airports by 2024.
Europe is projected to show significant growth due to the rising number of air travelers and increased expenditure on the aviation sector from regulatory authorities from the U.K., France, Germany, and other countries in the region. Major market players, such as MULAG Fahrzeugwerk, Cavotec SA, TLD, Mallaghan, and others, are anticipated to drive the market in the forecast period.
The Rest of the World market will witness remarkable growth during 2023-2031. The growth is due to a rapid expansion of the aviation sector and the growth in air traffic in Middle East region countries, such as the UAE, Saudi Arabia, Israel, and Turkey.
Key Players Are Focused On Forming Partnerships and Acquisitions to Survive in the Market
Original equipment manufacturers (OEMs) focus on business expansion through contracts with airlines of different countries. For instance, in March 2023, Nexus Capital Management, a U.S.-based capital management company, acquired Aviation Ground Equipment Corp. and will integrate the company as a new entity under HDT Global. Textron Ground Support Equipment market share is expected to grow significantly in the forecast period owing to new developments and heavy investments in R&D. Similarly, other companies in the market are relying on partnerships and acquisitions for long-term survival in the market.
An Infographic Representation of Ground Support Equipment Market
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The report provides detailed information on the market and focuses on aspects such as service types, infrastructure types, and key players. In addition, market research reports provide insights into airport ground and cargo handling service trends, competitive environment, market competition, product prices, and market conditions, focusing on key industry developments. In addition to the above factors, it contains several factors that have contributed to the sizing of the global market in recent years.
CAGR of 6.03% from 2023-2031
Value (USD Billion)
Type; Power Source; Ownership; and Geography
By Power Source
Fortune Business Insights states that the global market size was USD 7.14 billion in 2022 and is projected to reach USD 13.32 billion by 2031.
Registering a CAGR of 6.03%, the market will exhibit rapid growth during the forecast period (2023-2031).
The hi-lift loader segment will dominate this market during the forecast period.
Rheinmetall AG, Aero Specialties Inc., Cavotec SA, AND Curtis Instruments Inc. are the leading players in the global market.
North America topped the market in terms of market share in 2022.
The U.S. dominated the market in 2022.
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